Summary of Financial Results for the Third Quarter of the Fiscal Year Ending December 31, 2005 Performance exceeds results for the same period of the previous fiscal year and original targets. Figures represent records in real terms.

Oct. 28, 2005

Consolidated results in the third quarter (January 1, 2005 through September 30, 2005)

12.2% increase in net sales and 6.8% increase in operating income from the same period of the previous fiscal year

Yamaha Motor Co., Ltd. (the Company) and certain of its consolidated subsidiaries changed their fiscal year-end from March 31 to December 31, resulting in an irregular nine-month fiscal period. Due to the change in their fiscal year-end, the Company and its consolidated subsidiaries did not settle their accounts for the third quarter of the fiscal period ended December 31, 2004. In order to compare the results for the third quarter of the fiscal year ending December 31, 2005, spanning from January 1, 2005 through September 30, 2005, with those for the same period of the previous fiscal year, the Company has provided consolidated financial figures - for reference purposes only - which have been re-computed based on a nine-month period, spanning from January 1, 2004 through September 30, 2004.

The Company’s consolidated results for the third quarter of the fiscal year ending December 31, 2005 were 1,001.3 billion yen in net sales, 80.8 billion yen in operating income, 80.6 billion yen in recurring profit and 53.6 billion yen in net income. When compared with the results for the same period of the previous fiscal year, net sales and operating income increased by 12.2 percent and 6.8 percent, respectively. In comparison with the original targets, net sales, operating income, recurring profit and net income rose by 0.6 percent, 5.3 percent, 6.2 percent and 14.6 percent, respectively. Both net sales and profit figures exceeded the results for the same period of the previous fiscal year and the original targets, and set records in real terms.
On the exchange rate front, the average purchasing value of the yen against the U.S. dollar during the period under review appreciated by three yen from the value in the same period of the previous fiscal year, and was the same value as forecast in the original plan, standing at 105 yen. Meanwhile, the average purchasing value of the yen against the euro depreciated by five yen from the value in the same period of the previous fiscal year and by one yen from the forecast, standing at 136 yen.

The increase in net sales is attributable to favorable sales in all business segments - motorcycles, marine products, power products and other products - exceeding the sales results for the same period of the previous fiscal year.
Broken down by business segment, motorcycle sales amounted to 556.6 billion yen - up 14.5 percent from the same period of the previous fiscal year, due to sales increases in North America, Asia (excluding Japan), Latin America, and other regions. Sales of marine products totaled 187.2 billion yen - up 5.2 percent from the same period of the previous fiscal year, reflecting robust sales of environmentally-friendly, large outboard motors in Europe and the United States. Power product sales were 154.0 billion yen - up 9.1 percent from the same period of the previous fiscal year, thanks to sales expansions for all-terrain vehicles and side-by-side vehicles - a new product segment - in the United States. Sales in the “other products” segment reached 103.5 billion yen - up 18.3 percent from the same period of the previous fiscal year, led mainly by sales growth in the automobile engine business.

In terms of profit, operating income from power products totaled 17.6 billion yen - down 12.5 percent, due to decreased operating income from all-terrain vehicles in Europe. Operating income in the “other products” segment was 13.9 billion yen, remaining about the same as in the corresponding period of the previous fiscal year. Operating income in the motorcycle business reached 30.0 billion yen, - up 26.0 percent, due mainly to favorable sales results in North America, Europe, Latin America and other regions, while operating income in the marine product business amounted to 19.3 billion yen, up 9.8 percent, fueled by a sales expansion for large outboard motors.

Effective from the period under review, the Company changed the accounting status of Yamaha Jianshe Motor Shanghai Marketing Co., Ltd. from an equity method applied company to a consolidated company. Due to this and other factors, the number of consolidated subsidiaries stood at 98, an increase of two from the previous fiscal year-end, while the number of companies accounted for by the equity method was 51, remaining the same as at the previous fiscal year-end.

Forecast business results

No change in the forecast of record-high consolidated full-year business results - the seventh straight year-on-year increase in net sales and the fifth consecutive gain in operating income

The Company’s consolidated net sales and profits from January 1, 2005 through September 30, 2005 have both exceeded the target figures. However, business conditions surrounding the Company will remain unpredictable, due to the immense damage caused by hurricanes in the United States and higher oil prices on a global scale. Against this backdrop, the Company forecasts its consolidated business results for the fiscal year ending December 31, 2005 as follows: 1,320 billion yen in net sales; 101 billion yen in operating income; 101 billion yen in recurring profit; and 60 billion yen in net income. All these forecast figures are the same as those officially announced in the July 28, 2005 interim business report for the fiscal year ending December 31, 2005.

The forecast figures are based on the assumption that the average purchasing value of the yen against the U.S. dollar will stand at 105 yen during the fiscal year and will trade against the euro at 135 yen.